Where and how to store images?

Pardon if I'm missing the obvious but I'm trying to add a custom image label to my app. By default when I add the img control it is populated with Sencha logo and is referenced as "resources/images/sencha.png". There's no "resources" directory in the project source tree so I'm assuming that this file is loaded remotely. Does that mean that I have to have a running webserver and specify my image source using "http://foo.com/resources/images/foo.png"? Is there a way to add a static image files to the project ans have these published as part of the deploy?

Are you referring to the directory containing .metadata folder? If so - I manually created resources/images dir there and added foo.png. No image is shown in Designer which is not surprising to me since I think it is looking at some remote location. And when I do deploy the resource folder is not copied to my destination

OK - it does copy everything. Including .metadata and .svn folders (which I don't want is there any way to prevent this?). My project directory is not under my webserver. I'm using Tomcat so I deploy files under unwrapped WAR directory.
I get it to the point where after deploy I can see my image file on the webserver but that doesn't help me to build my UI in Designer since I can't get my image to display there